In my experience that fastest and easiest way to lose money in any investment is to react to short term market swings or volatility. Performance chasing, market timing, trying to pick individual stocks, making wild changes in asset allocations- these are all sure-fire ways to go broke quick. All serious money is invested with a LONG TERM time perspective. Personally, I have put together an asset allocation plan that lets me sleep at night and still achieve my financial goals. I have no plans of changing my asset allocation regardless of what happens in the short term because my plan is well thought out and matches my risk tolerance. If I do anything, I'll be adding to my stock holdings because I like to buy when things are on sale! My advice is to stay the course, it will pay off in the long run.

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I think at this point there needs to be a focus on an immediate increase in spending and I think this is a time when deficit fear has to take a second seat . . . I believe later on there should be tax increases. Speaking personally, I think there are a lot of very rich people out there whom we can tax at a point down the road and recover some of the money."
-- Barney Frank, October 20, 2008